Real Estate & Mortgagesbreaking news
Trump's housing order tells two federal lenders to cut interest rates
The multipart order targets the cost of buying a home, while down payments and fraud risks stay in focus for buyers.
This article is general information, not financial, investment or insurance advice. Check the details with a qualified adviser before you decide.
What the order does
FHFA director Bill Pulte praised Trump's new housing order as the greatest of its kind and said it could save millions of Americans thousands of dollars. [1] Trump signed the order, which is aimed at housing affordability, last month. [2]
The multipart order is titled Decreasing Housing Costs for the American People. [1] It directs the Departments of Agriculture and Veterans Affairs to reduce interest rates on their direct single-family loan programs. [2]
Treasury has also proposed a rule that would bar large institutional investors from buying single-family homes, absent specific exceptions. [1]
Refinancing and mortgage insurance
Brendan McKay, chief advocacy officer at the Broker Action Coalition, said the reforms could cut refinancing costs by nearly $2,400 on an illustrative $500,000 loan. [2]
Mortgage insurance typically costs between 0.46% and 1.5% of the loan each year, based on credit score. [2] As an example, a 1% rate on a $450,000 loan adds $375 to the monthly payment, a savings of $4,500 a year if eliminated. [2]
Down payments and closing fees
The national median down payment in the second quarter of 2026 climbed to $27,100, or 13.7% of the typical purchase price, up from 12.9% at the start of the year, according to Realtor.com. [2] On an annual basis, the typical down payment fell from 14.3% year over year, the lowest second-quarter level since 2021. [2]
Closing fees hit a median of $6,000 in 2022. [2] The Consumer Financial Protection Bureau has gone silent after the Trump administration scaled back its operations. [2]
Fraud and household strain
According to the American Land Title Association, seller impersonation fraud attempts doubled from 2024 to 2025, hitting 59% of surveyed title firms. [2] ALTA CEO Chris Morton said fraud is unaffordable and that the threats facing homeowners are growing. [2]
LendingTree found that 59 percent of mortgage holders say they are house poor. [1]
What this means for you
If you borrow through the Departments of Agriculture or Veterans Affairs direct single-family loan programs, the order directs those agencies to reduce interest rates. [2]
If you pay mortgage insurance, it typically costs between 0.46% and 1.5% of the loan each year, based on credit score. [2] On a $450,000 loan, a 1% rate adds $375 to the monthly payment. [2]
If you are saving for a purchase, the national median down payment was $27,100 in the second quarter of 2026. [2]
Sources
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